Quote from R/R:
Specifically "Once your traverse grew to the size of a channel, you then need a traverse to 'carry' price back across to the other side."
I suspect what was referred to is the notion that we begin looking for an FTT after we had VE, otherwise known as "don't expect an FTT before VE or Flaw" as in "we are unlikely to see FTT before flaw or VE" And since Ivob
expecting pt3 down this suggestion is definitely logical.
Personally, I still have not figured out how to use this expectation as it seems to contradict the anticipation on which the WMCN is built on. I expect
it to come to me later.
In my opinion, when 1430 [close of] broke out of the lateral formation on oncreasing red volume I saw it confirming an FTT on previous bar, which also happen to be pt3 of the green up channel (part B) which grew out of chubby tape (part A):
http://i276.photobucket.com/albums/kk20/ROMANUS42008/ES06-085_15_20085Minzoomed.png
The 1435, 1440 and 1445 bars [close of] proceeded to go higher on decreased black volume which is indication of
1. retrace in the down channel (purple pt3 formation), and
2. lateral movement
Looked to me like we had both. What follows a retrace in a down channel is either BO or resumption of dominant movement.
Bar 1450 [close of] going higher on increased black volume does not make things easier at all.
a) as higher high on increased black volume it signals
continuation and contradicts the view that this is a retrace of the down channel => the price resumed the dominant direction=> eliminates possibility of new dominant traverse in a purple down channel.
b) as IBGS it signals
change.
c) previous (1445 [close of]) bar was signal of change (went higher on decreasing black volume)=> the IBGS part of the 1450 [close of] bar
was the change that previous bar signaled, and after closing within the previous bar range it shows lateral movement =>
continuation
The YM saves the day showing at the end of it's 1450 bar formation FBO on increased volume, signaling to go long which is
continuation in the ES context.
However, if doing this as a drill to determine a change or continuation ar the end of bar, I would not be able to determine it without YM. I am leaning towards the c) being correct answer.
Spydertrader, if you'd be so kind, what is the correct view of the whole 1435-1450 [close of] movement, without referring to YM?
